Business Description:
Thorn Group Limited (TGA, formerly RR Australia Limited) is an operator in the Australian electrical and household appliances rental market, particularly the SME sector and government. The company offers a wide range of audio visual products, kitchen and laundry appliances and computers along with a new range of furniture and gym equipment on a rental basis or a purchase option.

Strategy Analysis:
TGA's broad strategy is to become Australia's leading provider of retail and financial services to the sub-prime consumer and commercial markets. They aim to continue to grow revenue in the core Radio Rentals and Rentlo businesses through continuation of their effective marketing campaign and the re-design of a number of their stores. Another initiative to drive growth in this area is the 'one person branch', which enables the business to optimise penetration into under-serviced markets. Thorn Group reported NPAT up 29.5% to $14.31m for the half-year ended 30 September 2011. Revenues from ordinary activities were $96.22m, up 19.8% from the same period last year. Diluted EPS was 9.77 cents compared to 8.37 cents last year. Net operating cash flow was $34.82m compared to $31.57m last year. The interim dividend declared was 4 cents compared with 3.54 cents last year.